Went to TAX SALE this week! - Posted by David
Posted by David on December 09, 1999 at 19:20:27:
The auction brought out about 150 bidders/spectators for a sale of 305 properties worth 13.5 million according to the assessment figures. Only 24 properties were sold, I got 1, a house assessed at $57,000 for $15,000. Bidding had started at only $914 but there was stiff competion and the price quickly rose.
You have to pay all cash, real cash no checks after each property is struck down. the bidding was feverish for a few properties, but many went for the minimum bid. Three of the properties sold I had researched and they had big mortgages, one for $100,000. Why those people bid, I don’t know. One property with a big mortgage was bid and won by the mortagge holder, a lot cheaper than going through judicial foreclosure.
There was one property, a vacant lot that nobody wisely bid on. It had a $440,000 mortgage. There were several properties that I was very interested on that were redemmed in the last 24 hours before the sale. Better luck next time.
I bought John Beck’s materials and was very pleased. I got to meet him also and he is knowledgable and a gentleman. He has more tax sale stories than anybody on the planet.
Tax sale are a niche and if you want to be a niche player you need some expertise and training. Or you could end up like the guy who just bought $100,000 mortgage on a $100,000 property!